Illegal activities is giving cryptocurrencies a bad image

[adekogbe]

It is no coincidence that a technology that facilitates a lot of illegal practices is the technology that is have troubles gaining approval from world governments.

I read a recent publication that says, According to CipherTrace: Thefts, scams and other misappropriation of funds from  crypto holders and exchanges have resulted in a $4.3 billion in losses in the year 2019 so far, and this will likely go on until there is sufficient oversight for cryptocurrencies and blockchain related activities because the world givernments cannot relinquish control to the masses in the way that the blockchain wants.

Regulations is needed to attain mass adoption

[nutriagrigia]

you should understand that in the real banking sector there are money thefts and hacker attacks are ten times higher. much more money is lost there than in the cryptocurrency market

[BITDV]

From the first time cryptocurrencies born, they have many image

1. Underestimate with cryptocurrencies function. Many people assume crypto wont work like cash, who want to accept crypto(people mindset at that time)

2. Crypto is scam because no one who want to give their money to others (my friends said). In fact, we didn't give money to others except  because they work as bounty hunter, translator, miner, etc. The purpose of this way is introduce cryptocurrencies to public and wish they interested to join using cryptocurrencies

3. Many people got scam because of crypto, let say ponzi schemes, pump and dump coin, failed project, scam ICO, failed ICO, etc. and then they blamming all cryptocurrencies.

from some example above is common people mindset for now. Need more educations for them, and also regulations. By theway they provide regulations such as KYC, otherwise most of crypto user not agree with KYC process.

What do you think about KYC? and do u have some ideas to make better regulations?

[masterrex]

It is no coincidence that a technology that facilitates a lot of illegal practices is the technology that is have troubles gaining approval from world governments.

I read a recent publication that says, According to CipherTrace: Thefts, scams and other misappropriation of funds from  crypto holders and exchanges have resulted in a $4.3 billion in losses in the year 2019 so far, and this will likely go on until there is sufficient oversight for cryptocurrencies and blockchain related activities because the world givernments cannot relinquish control to the masses in the way that the blockchain wants.

Regulations is needed to attain mass adoption

For me i believe in decentralization but how come decentralization will handle and dealing with the existing laws without honoring it, Thats why the crypto-space must be regulated to protect its users and to avoid fraudulent act that badly damaging the cryptocurrency space.

[odukoyaewatomi27]

It is very obvious that the only thing that is keeping crypto market from mass adoption. The illegal activities gives crypto a red trust and discourages institutional investors from joining the market.

[coaprotet]

Unfortunately, there is no way to fix this really. There are a lot of scams in our industry, but we have still not yet decided if we would implement more regulations to fix this or we would just stay anonymous and keep working in the same way as always.

[ashmodeus]

well, for global scale , Regulations is a hard things .

Many people got scam because of crypto, let say ponzi schemes, pump and dump coin, failed project, scam ICO, failed ICO, etc. and then they blamming all cryptocurrencies.

well , i have no idea about that.
we cant say they who blaming crypto is wrong.
since ICO have a high interest rate on that time, make people have a enthusiasm to ICO.
also ICO easy to created.

What do you think about KYC? and do u have some ideas to make better regulations?

nope.
like i say before , Regulations is a huge scale problem.

[AjithBtc]

It is no coincidence that a technology that facilitates a lot of illegal practices is the technology that is have troubles gaining approval from world governments.

I read a recent publication that says, According to CipherTrace: Thefts, scams and other misappropriation of funds from  crypto holders and exchanges have resulted in a $4.3 billion in losses in the year 2019 so far, and this will likely go on until there is sufficient oversight for cryptocurrencies and blockchain related activities because the world givernments cannot relinquish control to the masses in the way that the blockchain wants.

Regulations is needed to attain mass adoption

What the publication has done is completely a inappropriate content. What they've mentioned about the market as well as with the total sum of funds lost through cryptocurrency on various occasions of scam, theft and other illegal ways is good. It should've been given with a comparative study or some comparative data of same that has happened through fiat. Only through that it is possible for people to understand which is better. Looking at this people get a bad image over cryptocurrency while What is happening through is far higher than the mentioned $4.3 billion.

[tabas]

For the reference, these are the articles:
Cyber Criminals Netted $4.3B From Crypto-Related Crime in 2019: Study
CipherTrace estimates crypto industry lost $4.3B to cyber criminals in 2019, identifies "exit scam" as concerning trend

[TheClownSong]

It is no coincidence that a technology that facilitates a lot of illegal practices is the technology that is have troubles gaining approval from world governments.

I read a recent publication that says, According to CipherTrace: Thefts, scams and other misappropriation of funds from  crypto holders and exchanges have resulted in a $4.3 billion in losses in the year 2019 so far, and this will likely go on until there is sufficient oversight for cryptocurrencies and blockchain related activities because the world givernments cannot relinquish control to the masses in the way that the blockchain wants.

Regulations is needed to attain mass adoption

Technology is like a double-edged sword, which can be used for good and also to commit criminal acts. It all depends on the user and in all sectors there are always good fraudsters in the stock market or other investments. Cryptocurrency is a new type of investment and is now in great demand by investors and this makes scammers try to cheat others. I think indeed we must be careful so that our wallets are safe and avoid fraud

[Sacramentus]

Cryptocurrency is not the only industry or place with illegal activities. You only know about this because cryptocurrency is about transparency and so what ever happens in it, everyone is aware. Have you taken out time to research on banks and other financial sector?

[qwizzie]

I do believe some cryptocurrencies got a bad image due to a lot of media attention on their associated illegal activities, but at the same time
those cryptocurrencies have very little actual usage / transactions in those illegal activities.

Link : https://blockonomi.com/ciphertrace-crypto-money-laundering-ending/

Bitcoin’s privacy is considerably inferior to the privacy protections Monero and Zcash make possible, but BTC is still the money of choice in these dark markets.
Why? It appears to be because bitcoin is simply easier to use in these contexts, CipherTrace explained:

“[Our] results show that privacy coins are barely used in dark markets and at dark vendor sites (e.g. only 4% of instances involve Monero (XMR) […]What this suggests is
that while privacy coins may seem like a boon to criminals, drug gangs and terrorists, the barriers to entry for buying and selling Monero and other anonymous tokens makes
them impractical for most dark market purchases and ransomware payments. They are most useful as a payment rail and to obfuscate chain hopping to more liquid tokens.”

Of course, bitcoin mixers can provide users with privacy, but one can safely assume that not everyone on the dark web is resorting to mixers. In that sense, more and more
dark web activities are having their transactions permanently open-sourced on the Bitcoin blockchain.

See also : https://dashnews.org/private-bitcoin-transactions-over-double-all-privacy-focused-cryptocurrencies-combined/

Even the usage of illegal activities through Bitcoin simply pales in comparison with illegal activities through FIAT and its traditional banking system.

[InwardContour]

I also believe regulations to an extent is required for crypto to gain mainstream adoption. A lot of criminal and illegal activities going on in crypto space, hiding under the privilege that crypto transactions are somewhat anonymous. From ICO scams to other criminal activities. Recently kidnappers started demanding for bitcoin or privacy coin ransome which is not right, going deep to restrain crypto adoption. Also people use crypto for illegal transactions on darkweb. All these things can't be reduced without regulations, although regulations has its own downsides.

[Red-Apple]

i disagree.
all the illegal activities are happening more in fiat systems specifically banks. the fraudulent activities that a bank alone does isn't even going to be 1/10 of what happens in the entire cryptocurrency market.

what gives cryptocurrencies a "bad image" is two things.
first is the FUD in the media that sometimes is even funded by the same corrupted banks that have felt threatened by bitcoin that they think they can no longer pull their scams.
and second is by the large number of shitcoins that keep on being created in the altcoin market and scam people with their pump and dumps.

[TrevorS]

Of course, such things spoil the reputation of cryptocurrency. But the coin always has two sides, and who is responsible for which side to show people?
The answer is media.
The media will always do what is beneficial to those who benefit from it, which means if cryptocurrency is needed, you can both denigrate and make a saint.

[FLHippy]

It is a free market, free for everyone. This market will learn you how to live in a freedom, without any intermediary, insurance or any support that help you. Only you are responsible for your funds, moves.. You don´t like freedom?

[Wittny]

Too much scam in cryptocurrency is giving cryptocurrency another name, too much fraudulent activities, too much of ico scam, too much of doing fake self drop and bounty, i just pray and believe all this is been resolved soon.

[sana54210]

All those stories that is being told by government are just unnecessary excuses, if the government really wants the illegal activities to reduce, they have the power to do so through regulation, which I believe they ought to have been debating on by now.

There is no system that does not come with illegal activities so far it has to do with money, you still cannot compare the illegal activities around cryptocurrency to fiat, If we are to talk about fiat own, we will be counting trillions of dollars already, but yet, government has not stopped printing the useless fiat that is leading to this major illegal activities, and cryptocurrency that would have halted that, they are not supporting it and I think what they ought to have really done is to accept it but just look for a way to bring control into it.

[Msworld83]

There is no how that we will not see such act in the mix of a great ones as every good must have a bad side too, which we all need to work more hard to let people see more of it good side than the bad one so we can all win together in respective if how bad people want to take the glory down.

[BlackFor3st]

Illegal activities are not only in crypto currencies therefore we cannot really say that illegal activities became rampant because of crypto currencies instead even without crypto currencies illegal activities are already there.

Though hacking of crypto exchanges are the very top priorities of black hackers right now as they can easily get millions of money without any trace if they can successfully bypass the security of any exchange.